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Being a product owner can be overwhelming – like you’re trying to juggle lots of things at once. Between defining the product scope, creating a great experience for your customers, working with cross-functional teams, and understanding when something is your number one priority and all focus should be on that.
In this list of never-ending tasks, the key one is the ability to manage project risks. Risks are almost inevitable, and to mitigate them, you need to prepare yourself. Even a simple activity can turn into an unexpected problem. Addressing and realizing those risks in advance can save you time, costs, and sometimes your product. When you plan the digital product development process, first of all, answer this question: “do I understand the problem I’m solving, and is this problem worth solving?”
In this article, you’ll find more about risk mitigation planning, why you need it, and how to build products customers actually need.
First of all, let’s figure out what are the reasons that something can go wrong in your project. Here are some of the most common risks associated with product development.
As an industry expert, you might think that you know what your users need. This assumption creates a risk of working on a product that, as a result, will be used only by you and possibly by several more people (sorry for being straightforward). The risk is higher as you grow the product idea on assumptions or without conducting enough user research.
Starting a business is hard. A survey conducted by CB Insights among 101 failed startups states that 70% of startups fail because there is NO market need for a product (42%). It follows that companies should build products only according to the real needs of their users.
There are several questions that you should answer to minimize the risk of building a product that doesn’t meet users’ needs and wants.
The result of your answers will help you to differentiate your product and create a unique value proposition (UVP).
There’s no universal formula to guarantee project completion on time. However, there are a few tips that can help you mitigate the chances to fail meeting the project deadlines.
Things happen. When the work on the product is in full swing, one of the developers leaves the project.
As a result, you might experience team members’ change-over or lack of qualified specialists. To minimize risks associated with human resources, try to organize team members into small groups. In this way, team members can jointly plan a project, share knowledge, perform code reviews and work together on tasks from the get-go. Also, the team should be able to easily perform work if one of its members is temporarily absent or has left the team.
Before you start working on the project, you’ll want to be meticulous when deciding on a tech stack and whether it suits your business goals. This choice can make or break the entire product performance and UX. Here are four (at least basic) rules we recommend to keep an eye on when deciding on a new technology stack for your next project:
Here are a couple of things to catch up on when managing risks and your project:
You can’t resolve a risk if it’s unknown. For starters, try to make assumptions, brainstorm all potential risks, and write them down. This way you structure all of your concerns. Think of all the possible things that can go wrong and note them. Don’t forget to refer to past projects as this is a source of real risks that you can prevent in the current project. After you make a list of possible risks and review them, assign who is responsible for what risk.
Don’t be afraid and don’t avoid talking about risks. On the contrary, pay close attention to risk communication during team meetings and make sure that everyone in the team perceives risk management as an integral part of the project.https://giphy.com/embed/rZwm8oOApXjDBjs3Pk
Prioritization focuses on what matters most in the risk mitigation process. However, ‘what matters most’ can vary during the project: some risks may have a higher impact and probability than others. To evaluate what risks may have the most negative impact, and have a higher probability of occurrence create or use ready-made evaluation tools to categorize and prioritize the risks.
Before defining how to manage risks, the project team should identify what can cause the identified risks. Think about the effects and consequences of a particular risk. https://giphy.com/embed/SAAMcPRfQpgyI
First, let the entire team answer these questions as accurately as possible:
The acquired information will provide valuable insights into your project, and you will find it helpful later when optimizing the risks.
For each major risk identified, create a contingency plan to manage it. You then act according to how you’ve prioritized those risks. Arrange a meeting with your project team and try to find answers to the following questions:
Answering these questions allows your team to improve the digital product development process. Based on the above-mentioned points prepare an action plan and convert it into feasible tasks. Once you implement the risk mitigation plan, your work isn’t finished. Risks are dynamic and tend to transform, evolve, and reappear throughout the entire project life cycle.
Yes, risk mitigation might seem like a daunting task. But if you do your homework and embed a risk management strategy into the digital product development process, you can reduce the chances of project overrun, escalating costs, resources challenges, and more.